Ex Milestone Exec Becomes Vicon CEO

Wow, he sure does like challenges.

Just days after leaving an easy job at Milestone, Eric Fullerton [link no longer available] has taken one of the toughest jobs in the entire industry - becoming CEO of Vicon.

Vicon has struggled mightly in the past, well, decades.

Its most ambitious move has been their recent merger / acquisition of IQinVision, another company that has had huge challenges.

Fullerton, though, is undeterred, emphasizing that “I see great opportunities ahead for us by combining IQinVision’s strong brand in HD/megapixel cameras with the long history that Vicon has in video management systems. I look forward to joining this great team.”

Vicon's Market Value / Fullerton's Potential

He will be rewarded if he can deliver, with 600,000 options over the next 4 years. Vicon currently has 9 million shares, at a price of ~$3.50 and a total market cap of ~$30 million USD, compared to annual revenue of ~$36 million. Indeed, the stock price in the previous month shot up.

Nonetheless, Vicon's valuation is still low. If the company could even return to mediocrity, Fullerton's options / shares could be worth $5 to $10 million.

Vicon's Product Positioning

The big challenge is that neither Vicon nor IQinVision's products have strong competitive positioning. Though IQinVision was once an early market megapixel leader, rivals have long since caught up and many have passed them.

Presumably, or at least potentially, Fullerton could take the opposite approach he did at Milestone and focus on delivering a 'full solution', sort of an Avigilon clone. From the response of integrators, there clearly is a demand for more end to end offerings that are tightly distributed.

The good thing is that Fullerton has deep knowledge and connections to leverage, so it is definitely a plus for Vicon but turning this around will be an uphill battle for anyone.

What Do You Think?